C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
NASDAQ:CHRW - Nasdaq - US12541W2098 - Common Stock - Currency: USD
Taking everything into account, CHRW scores 6 out of 10 in our fundamental rating. CHRW was compared to 22 industry peers in the Air Freight & Logistics industry. CHRW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHRW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CHRW was profitable.
In the past year CHRW had a positive cash flow from operations.
In the past 5 years CHRW has always been profitable.
Each year in the past 5 years CHRW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.72%, CHRW belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
With an excellent Return On Equity value of 29.29%, CHRW belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
The Return On Invested Capital of CHRW (21.52%) is better than 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHRW is significantly above the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 29.29% | ||
| ROIC | 21.52% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
1.3 Margins
CHRW has a Profit Margin of 2.93%. This is in the better half of the industry: CHRW outperforms 77.27% of its industry peers.
In the last couple of years the Profit Margin of CHRW has declined.
Looking at the Operating Margin, with a value of 4.63%, CHRW is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
CHRW's Operating Margin has declined in the last couple of years.
CHRW has a Gross Margin of 16.02%. This is comparable to the rest of the industry: CHRW outperforms 54.55% of its industry peers.
CHRW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | 2.93% | ||
| GM | 16.02% |
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHRW is creating value.
CHRW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHRW has less shares outstanding
CHRW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.54 indicates that CHRW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.54, CHRW belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
The Debt to FCF ratio of CHRW is 2.43, which is a good value as it means it would take CHRW, 2.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CHRW (2.43) is better than 81.82% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that CHRW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, CHRW is in line with its industry, outperforming 45.45% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for CHRW, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 7.54 |
ROIC/WACC2.51
WACC8.57%
2.3 Liquidity
CHRW has a Current Ratio of 1.29. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
CHRW has a Current ratio of 1.29. This is comparable to the rest of the industry: CHRW outperforms 40.91% of its industry peers.
A Quick Ratio of 1.29 indicates that CHRW should not have too much problems paying its short term obligations.
CHRW has a Quick ratio of 1.29. This is comparable to the rest of the industry: CHRW outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
CHRW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.76%, which is quite impressive.
Measured over the past 5 years, CHRW shows a small growth in Earnings Per Share. The EPS has been growing by 1.49% on average per year.
The Revenue has been growing slightly by 0.73% in the past year.
Measured over the past years, CHRW shows a small growth in Revenue. The Revenue has been growing by 2.97% on average per year.
EPS 1Y (TTM)47.76%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%12.17%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-7.74%
3.2 Future
Based on estimates for the next years, CHRW will show a small growth in Earnings Per Share. The EPS will grow by 7.99% on average per year.
Based on estimates for the next years, CHRW will show a small growth in Revenue. The Revenue will grow by 2.22% on average per year.
EPS Next Y6.42%
EPS Next 2Y11.15%
EPS Next 3Y8.74%
EPS Next 5Y7.99%
Revenue Next Year-7.24%
Revenue Next 2Y-1.56%
Revenue Next 3Y0.52%
Revenue Next 5Y2.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.30, which indicates a rather expensive current valuation of CHRW.
CHRW's Price/Earnings ratio is a bit cheaper when compared to the industry. CHRW is cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, CHRW is valued at the same level.
With a Price/Forward Earnings ratio of 20.74, CHRW is valued on the expensive side.
72.73% of the companies in the same industry are more expensive than CHRW, based on the Price/Forward Earnings ratio.
CHRW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 20.74 |
4.2 Price Multiples
CHRW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHRW indicates a somewhat cheap valuation: CHRW is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.55 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CHRW may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)15.67
EPS Next 2Y11.15%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 2.49%.
Compared to an average industry Dividend Yield of 3.82, CHRW pays a better dividend. On top of this CHRW pays more dividend than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, CHRW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.17%.
CHRW has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CHRW decreased in the last 3 years.
Dividend Growth(5Y)4.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
58.59% of the earnings are spent on dividend by CHRW. This is a bit on the high side, but may be sustainable.
The dividend of CHRW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.59%
EPS Next 2Y11.15%
EPS Next 3Y8.74%
115.32
+17.67 (+18.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners97.21%
Inst Owner Change-0.49%
Ins Owners0.82%
Ins Owner Change1.42%
Market Cap13.69B
Analysts72.73
Price Target112.59 (-2.37%)
Short Float %5.57%
Short Ratio6.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend2.5
Dividend Growth(5Y)4.17%
DP58.59%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.84%
Min EPS beat(2)6.62%
Max EPS beat(2)9.07%
EPS beat(4)4
Avg EPS beat(4)10.71%
Min EPS beat(4)6.62%
Max EPS beat(4)17.6%
EPS beat(8)6
Avg EPS beat(8)4.49%
EPS beat(12)7
Avg EPS beat(12)1.55%
EPS beat(16)10
Avg EPS beat(16)4.64%
Revenue beat(2)0
Avg Revenue beat(2)-7.15%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)-6.93%
Revenue beat(4)1
Avg Revenue beat(4)-4.18%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)0.6%
Revenue beat(8)2
Avg Revenue beat(8)-3.68%
Revenue beat(12)2
Avg Revenue beat(12)-4.73%
Revenue beat(16)6
Avg Revenue beat(16)-1.15%
PT rev (1m)-0.36%
PT rev (3m)-1.97%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-4.8%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-0.97%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 20.74 | ||
| P/S | 0.79 | ||
| P/FCF | 23.55 | ||
| P/OCF | 21.08 | ||
| P/B | 7.89 | ||
| P/tB | 49.46 | ||
| EV/EBITDA | 14.24 |
EPS(TTM)4.95
EY4.29%
EPS(NY)5.56
Fwd EY4.82%
FCF(TTM)4.9
FCFY4.25%
OCF(TTM)5.47
OCFY4.74%
SpS146.21
BVpS14.61
TBVpS2.33
PEG (NY)3.63
PEG (5Y)15.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 29.29% | ||
| ROCE | 27.13% | ||
| ROIC | 21.52% | ||
| ROICexc | 22.5% | ||
| ROICexgc | 46% | ||
| OM | 4.63% | ||
| PM (TTM) | 2.93% | ||
| GM | 16.02% | ||
| FCFM | 3.35% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
ROICexc(3y)25.06%
ROICexc(5y)23.32%
ROICexgc(3y)62.88%
ROICexgc(5y)54.03%
ROCE(3y)30.15%
ROCE(5y)28.01%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y-4.51%
ROICexc growth 5Y-1.82%
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
F-Score7
Asset Turnover3.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 68.63% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.95% | ||
| Profit Quality | 114.45% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 7.54 |
F-Score7
WACC8.57%
ROIC/WACC2.51
Cap/Depr(3y)99.97%
Cap/Depr(5y)86.13%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.41%
Profit Quality(3y)150.71%
Profit Quality(5y)108.59%
High Growth Momentum
Growth
EPS 1Y (TTM)47.76%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%12.17%
EPS Next Y6.42%
EPS Next 2Y11.15%
EPS Next 3Y8.74%
EPS Next 5Y7.99%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-7.74%
Revenue Next Year-7.24%
Revenue Next 2Y-1.56%
Revenue Next 3Y0.52%
Revenue Next 5Y2.22%
EBIT growth 1Y58.41%
EBIT growth 3Y-11.13%
EBIT growth 5Y-0.79%
EBIT Next Year14.83%
EBIT Next 3Y10.07%
EBIT Next 5Y5.86%
FCF growth 1Y-67.5%
FCF growth 3Y160.19%
FCF growth 5Y-11.11%
OCF growth 1Y-66.15%
OCF growth 3Y73.8%
OCF growth 5Y-9.8%